SEBI has mandated the disclosure of a Credit Risk-o-Meter for debt securities in offer documents, advertisements, and online bond platform products (OBPP), effective 45 days from 8 October 2026.
SEBI Introduces Credit Risk-o-Meter Disclosure Norms
Securities and Exchange Board of India (SEBI) has mandated the use of a Credit Risk-o-Meter for all debt securities in offer documents, advertisements, and platforms offering online bond products (OBPP). The directive, issued on 8 October 2026, will come into force 45 days after publication. The Credit Risk-o-Meter is designed to standardize risk disclosure to investors, providing a visual and descriptive representation of credit risk across debt instruments.
The framework requires issuers and intermediaries to disclose key risk indicators including credit rating migration, default probability, and recovery prospects. The tool aims to enhance retail investor understanding and support informed decision-making. SEBI emphasized uniformity in presentation to prevent misinterpretation and misleading advertising. The move aligns with broader investor protection objectives under Project Jagrook.
For practitioners, this development necessitates updates to offering documentation and marketing materials for debt issuances. Compliance officers and merchant bankers must ensure integration of the Credit Risk-o-Meter in alignment with SEBI’s prescribed format. The mandate reflects SEBI’s increasing focus on transparency in fixed income markets, particularly as retail participation grows.
